Firms Decide How Much to Spend on Product Development and Marketing

question 105

Multiple Choice

Firms decide how much to spend on product development and marketing by

• A) spending the same amount as they did in previous years.
• B) spending the historical average of 1/4 of total production cost.
• C) determining what it will take to eliminate excess capacity.
• D) balancing the cost and the benefit of product development and marketing.
• E) ensuring that the marginal cost of product development and marketing is less than or equal to the marginal cost of producing the good or service.

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Definitions:

Anti-Black Attitudes

Negative predispositions, prejudices, or biases against Black individuals or communities.

Pro-Black Attitudes

Positive beliefs, feelings, or actions towards individuals of African descent or towards the broader African community.

Stereotypes

Oversimplified generalizations about a group of people that disregard individual differences.

Institutional Discrimination

Unfair restrictions on opportunities for certain groups of people through institutional policies,structural power relations, and formal laws.